Abstract
Micro and Small Enterprises (MSEs) play a vital role significantly in a country’s economic development and employment. But the volatile economic environment with intensified competition makes the survival of the MSEs a tough one. Hence the sustainable performance of the MSEs is an essential need today. Among the many factors that stimulates the performance of the MSEs entrepreneurial leadership and its effect on the performance is not explored well by the researchers. Hence this study attempts to find the relationship between the entrepreneurial leadership and the performance, effect of entrepreneurial leadership on the performance of the MSEs in Eastern Tigray Region of Ethiopia. The study throws a light on the performance of MSEs and how it is influenced by the entrepreneurial leadership of the entrepreneurs which may add values to the entrepreneurs. The respondents are the employees of the MSEs, the total no of enterprises in the region is 19718 and the sample size was derived as 392. Well structured questionnaires were administered to collect the required data. The data were collected during 2017. SPSS software was applied to compute the data. Mean and standard deviation are the statistical tools applied to describe the variables under the study. The statistical tools correlation and regression have been applied to test the hypothesis. The results decipher that there is a positive correlation between entrepreneurial leadership amd the performance of the MSEs. The study also has found that the entrepreneurial leadership considerably affects the performance of the entrepreneurs. The study results imply that there is a scope to the entrepreneurs to improve their entrepreneurial leadership which may result in higher level of performance of the MSEs in Eastern Tigray, Ethiopia.
Highlights
Micro and Small Enterprises (MSEs) play significant roles in the global economy by means of contributing to output, employment and income
The study results imply that there is a scope to the entrepreneurs to improve their entrepreneurial leadership which may result in higher level of performance of the MSEs in Eastern Tigray, Ethiopia
The employees were asked to measure the entrepreneurial leadership of the entrepreneurs of the enterprises they belong experience of the employees is an indispensable factor which may lead to a perfect judgment in turn will increase the credibility of the data
Summary
Micro and Small Enterprises (MSEs) play significant roles in the global economy by means of contributing to output, employment and income. The role of Micro and Small Enterprises is especially very significant in case of developing countries. MSEs are established in a wider geographical area both in the rural and urban areas. Though the SMEs are smaller in size but big in numbers, its role in income distribution for a country is vital (Madanchian Mitra, Hussein, Norashikin, Noordin Fauziah & Taherdoost Hamed, 2015). Thurik & Wennekers (2004) affirmed the vital link between the MSEs and the economic development of the nation. MSEs are vital to employment and poverty reduction. (Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V, 2007). In addition to economic growth MSEs play significant role unsustainable development
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